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LIC MF Manufacturing Fund PPT presentation
- 1. Building Wealth through India’s Manufacturing Evolution
- 2. This product is suitable for investors who are seeking*: • Capital appreciation over long term • Investment predominantly in equity and equity related instruments of companies following manufacturing theme • Risk - Very High NFO Opens NFO Closes Scheme opens for continuous sale and purchase 20th September, 2024 04th October, 2024 16th October, 2024 *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.#The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made. The Benchmark Riskometer is based on the evaluation of constituents of the Benchmark as on 31st August 2024.
- 3. Process of converting raw materials or parts into finished goods using Machinery, Tools and Human Intervention India’s manufacturing sector spans across multiple industries India’s Manufacturing Industries Chemicals Food & Beverages Textile Industries Automobiles & Auto Ancillary Electricals & Electronics Building Materials The above list of industries is for illustration purposes only and may not be deemed to be an Investment advice by the AMC. These industries may or may not form part of the portfolio of the Scheme. Defence & Aerospace Consumer Durables Other Industries Engineering Pharmaceuticals What is Manufacturing?
- 4. Indian Economy Manufacturing Lagged Source: Ministry of Statistics and Program Implementation (MOSPI) GVA: Gross Value Added * GVA calculated on CAGR basis for FY14-24 Indian Manufacturing sector grew lowest during this period Sector GVA (Bn) FY 24 % of Total GVA FY14-24* No. Services 1743 55% 10.80% 01 Agriculture 563 18% 9.40% 02 Industry (Utilities + Mining + Construction) 425 13% 9.20% 04 Total GVA 3186 100% 10.00% Manufacturing 455 14% 8.30% 03
- 5. The Growth Imperative for Indian Manufacturing 1. Sufficient and Affordable Workforce 2. Low-Cost Energy Access 3. Supportive Government Policies 4. Shifting Supply Chains: Reducing Reliance on China 5. Huge Consumer Market for Domestic Manufacturing
- 6. India’s Competitive Edge Expected change in working age population (25-64) by 2045 (Million People) India’s Manufacturing Output India’s working population India’s Export PARAMETER As % of World 1.90% 19.0% 2.90% Source: World Bank, Working Population (15-64 Year) for CY23 Source: World Bank, United Nations (UN), Jefferies 179 12 5 3 2 1 -3 -6 -13 -48 -103
- 7. Base corporate tax rate in Asian economies Source: Bloomberg CY23 Power cost across different geographies Electricity cost for business as on March 2023 ( ₹ per KWh) India Vietnam China Thailand Philippines Singapore India’s Competitive Edge 25% 22% Philippines Sri Lanka Bangladesh 35% 30% 25% 20% 15% 10% 5% 0% China Indonesia Korea Malaysia Japan India Cambodia Taiwan Thailand Source: Worldpopulationreview.com
- 8. Tech Product www.reallygreatsite.com Government Focus on Domestic Manufacturing Other Government policies supporting manufacturing sector • Make in India drives local manufacturing and attracts investment. • Atma Nirbhar Bharat aims for self-reliance through Economy, Infrastructure, System, Demography, and Demand. • India’s National Logistics policy, aims to reduce logistics costs and improve efficiency and infrastructure. • Import substitution The above list of industries is for illustration purposes only and may not be deemed to be an Investment advice by the AMC. These industries may or may not form part of the portfolio of the Scheme. Source: Government of India (GoI), Jefferies; Data for the FY 24 Steel, Textile & Food Solar PVs Semiconductors & Displays Pharma & Devices Electric Vehicles & Batteries Mobiles & Electronics
- 9. China is losing its Market Share US imports from China declined by 750 bps since 2018. US imports during same period from Mexico, Vietnam, Taiwan, Thailand and India have risen. Source: TRADEMAP, Avendus Spark Research 2024 US imports from China as % of their total imports US imports from China are declining
- 10. Categories India can Gain Against China Exports Category CY 2023 ($ Billion) (China Exports) CY 2023 ($ Billion) (India Exports) China to India exports Ratio(x) Electrical Machinery & Equipment Nuclear Reactors / Boilers Apparel-Knitted Articles Organic / Speciality Chemicals Vehicles other than Railway Iron or Steel Articles Optical / Medical Equipments Ships, Boats and Floating Structures Aircraft, Spacecraft, and Parts Footwear Non-Oil-Non-Gold Export 899 512 83 78 193 98 70 32 7 53 3296 31.9 29.2 6.6 19.2 20.7 9.7 5.0 4.2 1.7 2.5 306 28.2x 17.6x 12.5x 4.0x 9.3x 10.1x 14.1x 7.7x 4.2x 21.0x 10.8x The above list of export categories is for illustration purposes only and may not be deemed to be an Investment advise by the AMC. These may or may not form part of the portfolio of the Scheme. | Source: TRADEMAP, Avendus Spark Research
- 11. World Manufacturing Output and Market Share Global Manufacturing Share CY23 ($ Tn) Market Share CY23 ($ Tn) Market Share China 5.4 28.8% India 0.5 2.9% United States 2.9 15.5% Europe 2.7 14.4% Rest of the World including India 7.7 41.3% World Manufacturing Size 18.7 100% With continued policy support and increasing foreign direct investments (FDI), India's share of the global manufacturing market is expected to rise. Source: World Bank, (% reflect Global Manufacturing share)
- 12. Sectoral Opportunity India Market Size ($Bn) Global Market Size ($Bn) India’s Market Share Automobile & Auto Components 74.1 3565 2.1% Electric Equipment 65 1724 3.8% Contract Development and Manufacturing Organizations (CRDMO) (Pharma) 7 197 3.6% Speciality Chemicals 50 900 5.6% Scalable Opportunities The above list of sectors is for illustration purposes only and may not be deemed to be an Investment advice by the AMC. These sectors may or may not form part of the portfolio of the Scheme. Source: Automotive Component Manufacturers Association (ACMA), Frost & Sullivan, KPMG, India Brand Equity Foundation (IBEF) Data for the CY23 These sectors may benefit from India's growing domestic market, increasing global demand, and supportive policy frameworks, making them highly scalable.
- 13. India’s Export of Electronic Goods India's exports of Electronic goods (USD Bn) Source: Centre for Monitoring Indian Economy (CMIE) India's exports of Electronic goods (USD Bn) In the aftermath of the COVID-19 pandemic, India is rapidly expanding its foothold in the global electronics market. 35 30 25 20 15 10 5 0 FY14 FY19 9 10 35 30 25 20 15 10 5 0 FY19 FY24 10 31
- 14. India’s Defence Export Source: Press Information Bureau (PIB), Ministry of Defence (MoD) 25000 20000 15000 10000 5000 0 Defence Exports (Rs Cr) FY21 8434 FY24 21083 Indian defence exports are experiencing robust growth, thanks to the government's recent initiatives to promote international sales.
- 15. Sectors That May Grow In India Automotive Industrial Machinery Power Equipment Pharmaceutical Chemical Textile Semiconductor Space Satellite Nascent Sectors Defence Aerospace Power Cables Electronics Manufacturing Services (EMS) Consumer Durables Data Centre Sunrise Sectors The above list of sectors is for illustration purposes only and may not be deemed to be an Investment advice by the AMC. These sectors may or may not form part of the portfolio of the Scheme. Source: Internal Research Scalable Sectors
- 16. Domestic Demand Indian Manufacturing Capacity Utilization crossed Pre Covid level. Indian Capex Cycle Picking Up after decade of weakness Import Substitution India Imports $423bn Merchandise Vs $320bn Exports Global Supply Chains Realignment (China+1) China exports $3.3Tn Vs India’s $306bn in CY23 (China 11x vs India) Global Supply Chains Realignment (Europe+1) High Energy & Employee cost in Europe causing Manufacturing Unviable European Manufacturing Size $2.7 Trillion High End Exports High End Exports in Defence, Aerospace just started Manufacturing Opportunity For India Source: MOSPI, TRADEMAP, Avendus Spark Research 2024
- 17. An open-ended equity scheme following manufacturing theme SCHEME TYPE INVESTMENT OBJECTIVE HOW WILL THE SCHEME ALLOCATE ITS ASSETS? INSTRUMENTS Equity and equity related instruments of companies following manufacturing theme 80 100 Equity and equity related instruments of other than above companies 0 20 Debt and Money market instruments 0 20 Units issued by REITs and InvITs 0 10 Fund Facts of LIC MF Manufacturing Fund Under normal circumstances, the asset allocation pattern will be as follows: The investment objective of the Scheme is to achieve long term capital appreciation by predominantly investing in equity and equity related instruments of companies following manufacturing theme. There is no assurance that the investment objective of the Scheme will be achieved. For more details on Asset Allocation please refer Scheme Information Document Indicative allocations (% of total assets) MINIMUM MAXIMUM
- 18. The Scheme will follow an active investment strategy. The Scheme will follow a Top-down and bottom-up approach to stock-picking and choose companies that are engaged in manufacturing and allied activities. The Scheme will also review these investments from time to time and the Fund Manager may churn the portfolio to the extent considered beneficial to the investors. INVESTMENT STRATEGY 01 Companies that are engaged in manufacturing activities 02 Companies that are well placed to substitute India’s imports by manufacturing locally Companies that may benefit from Government’s Make in India initiatives and Production Linked Incentive (PLI) 03 04 Companies that export goods manufactured in India Companies that enable manufacturing of new age technology solutions in India and abroad 05 Fund Facts of LIC MF Manufacturing Fund Following Companies would be a part of manufacturing theme:
- 19. The Scheme has the following two plans: 1.Regular Plan 2.Direct Plan The Regular and Direct plan will be having a common portfolio The scheme has the following Options: 1.Growth Option 2.Income Distribution cum Capital Withdrawal (IDCW) Option IDCW Sub Options are: 1.Reinvestment of Income Distribution cum Capital Withdrawal Option. 2.Payout of Income Distribution cum Capital Withdrawal Option FUND MANAGERS Mr Yogesh Patil Mr Mahesh Bendre PLANS OPTIONS Default Option - Growth Option (In case Growth Option or IDCW Option is not indicated) Default Sub Option – Reinvestment of IDCW Option (In case Payout or Reinvestment of IDCW Option is not indicated). Nifty India Manufacturing Index (TRI) FIRST TIER BENCHMARK Fund Facts of LIC MF Manufacturing Fund
- 20. SPECIAL PRODUCTS ● Systematic Investment Plan (including SIP Pause*, SIP Step up Facility, Micro SIP) ● Systematic Transfer Plan (Fixed Systematic Transfer Plan and Capital Appreciation STP facility)* ● Systematic Withdrawal Plan* ● Automatic withdrawal of Capital Appreciation* *Available only during Ongoing Offer Period. The Investors will have an option to cancel the SIP, STP/SWP during the ongoing offer period, for details in this regard, please refer Statement of Additional Information. SPECIAL FACILITIES ● Facility to transfer Dividend (IDCW) ● Auto Switch Facility* ● Acceptance of Transactions through Online platforms viz., ○ AMC Website – www.licmf.com ○ MF Central ○ MF Utilities ○ Stock Exchanges (NSE/ BSE) ○ Registrar and Transfer Agent platforms *Available only during New Fund Offer Period. Fund Facts of LIC MF Manufacturing Fund For further details of above special products / facilities, kindly refer Statement of Additional Information (SAI). The SIP start date in case of NFO registration shall be after the Scheme reopening date.
- 21. Exit Load: 1.If units of the Scheme are redeemed / switched-out within 90 days from the date of allotment: ■ Upto 12% of the units: No exit load will be levied ■ Above 12% of the units: exit load of 1% will be levied 2. If units of the Scheme are redeemed / switched-out after 90 days from the date of allotment: No exit load will be levied. Load shall be applicable for switches between eligible Schemes of LIC Mutual Fund as per the respective prevailing load structure, however, no load shall be charged for switches between options within the Schemes of LIC Mutual Fund. During New Fund Offer: Application Amount/Switch in – Rs.5,000/- and in multiples of Re.1 thereafter. SIP* Amount Daily Monthly Quarterly Rs. 300/- and in multiples of Re.1/- thereafter. Rs. 1,000/- and in multiples of Re.1/- thereafter. Rs. 3,000/- and in multiples of Re.1/- thereafter MINIMUM APPLICATION AMOUNT *SIP Start date shall be after re-opening date of the scheme On an ongoing basis: Application Amount/Switch in (Other than fresh purchase through SIP) – Rs.5,000/- and in multiples of Re.1 thereafter. SIP Amount Daily Monthly Quarterly Rs. 300/- and in multiples of Re.1/- thereafter. Rs. 1,000/- and in multiples of Re.1/- thereafter. Rs. 3,000/- and in multiples of Re.1/- thereafter MINIMUM APPLICATION AMOUNT LOAD STRUCTURE Fund Facts of LIC MF Manufacturing Fund
- 22. Product Labelling Scheme & Benchmark Name The product is suitable for investors who are seeking* Scheme - Riskometer First Tier Benchmark – Riskometer LIC MF Manufacturing Fund First Tier Benchmark Nifty India Manufacturing Index (TRI) • Capital appreciation over long term • Investment predominantly in equity and equity related instruments of companies following manufacturing theme Risk – Very High *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. #The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made. The Benchmark Riskometer is based on the evaluation of constituents of the Benchmark as on 31st August 2024.
- 23. Thank you To know more, please consult your Financial Advisor OR CALL TOLL FREE 1800-258-5678